US Judge Freezes $110B Paramount-Warner Bros Merger

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California: A federal judge in California has temporarily halted Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery.

The order prohibits both media companies from closing the blockbuster transaction for 14 days ahead of a preliminary injunction hearing scheduled for August 3.

The ruling comes after 12 Democratic-led states, headed by California, filed a lawsuit challenging the deal. The states directly contested the Trump administration's Justice Department, which had cleared the mega-merger last month without requiring any structural divestitures.

In her decision, the judge noted that the state coalition raised ‘serious questions’ regarding potential anticompetitive outcomes. Opponents argue that combining two of Hollywood’s top five film distributors would harm consumers through higher prices, reduced content quality, and concentrated control over theatrical and cable licensing markets.

The merged enterprise would create an entertainment powerhouse holding control over Warner Bros. Pictures, HBO Max, and CNN. California Attorney General Rob Bonta celebrated the temporary restraining order as a vital preliminary victory in keeping entertainment markets free and fair.

Paramount pushed back against the court's hold, arguing the merger remains fully lawful and pro-competitive. A spokesperson emphasized that the company looks forward to defending the transaction's merits during the upcoming August hearing.